BIP-22: Third Period - Paradox

Summary

Please note that this Snapshot has a 48 hour voting window.

BIP-22 decides and confirms the upcoming format of the third period. This proposal is predominantly based on the existing format of the Second Period, documented under BIP-14. Here is a bullet-point summary of the proposed format:

0.1 The Art:

Art Engine:

• Continues to use Stable Diffusion version 1.5 and VQGAN + CLIP
• SD competes vs VQGAN + CLIP, with the pool balanced according to SD’s % dominance from last period (currently 69.53% SD, 30.47% VQGAN+CLIP)
• Botto creates artworks of varying aspect ratios (artwork format)
• Voting pool rebalances based on voters’ model preference
• Voting pool artworks rebalance based on voters’ preference on artwork format
• An art engine model is discontinued if less than 10% VP is spent on the model artworks in any given round
• 350 Artworks each round are culled by least-earned VP
• Uses one theme curated by the DAO: 'Paradox - A collision of opposites, a beautiful chaos and a fearless exploration of the unknown' as decided by BIP-20

Period Format:

• 12 Week Period
• 1050 Artworks in Voting Pool
• Manifold contracts used
• Artworks auctioned on SuperRare
• Rounds follow the same weekly format as seen in Genesis and Fragmentation periods.
• There will be no extended first round as in the 1st and 2nd periods. The first round will be a typical 1 week in length

Period Key Dates:

• February 21st 22:00CET / 16:00ET / 13:00PT: 3rd Period Starts (1 week)
• February 28th 22:00CET / 16:00ET / 13:00PT: First round ends
• March 1st 22:00CEST / 16:00ET / 13:00PT: 1st Mint & Auction
• May 17th 22:00CEST / 16:00ET / 13:00PT: 12th Mint (last artwork of 3rd Period)

0.2 Economy:

Voters can earn through:

• Spending VP every week (Active Rewards Contract)**
• Emissions (Governance & Liquidity Mining Contract)
• Retroactive Rewards (Determined by the DAO after the period finishes)**

* Requires an Access Pass or staked $BOTTO in the governance contract. ** Requires a minimum of 2,000 $BOTTO staked in the governance contract.

Protocol ETH revenue is distributed each round:

• 25% to Active Rewards Contract
• 25% reserved for Retroactive Rewards
• 50% to DAO treasury, with equivalent of ~~20%~~ 50% of revenue in $BOTTO burned

Subsidized Active Rewards 25% of revenue generated from the four sold Genesis Period artworks (not including the 4x OTC to Moderats) (37.94485ETH) are equally distributed across each round of Botto’s Third Period through the Active Rewards contract. This amounts to 9.486ETH distributed across 12 rounds, alternatively understood as a subsidized boost of 0.790517ETH per round.

Subsidized Retroactive Rewards Similarly, 25% of revenue generated from the four sold Genesis Period artworks (37.94485ETH) are equally distributed across each round of Botto’s Third Period through the Retroactive Rewards. This amounts to 9.486ETH starting in the retroactive rewards pool at the beginning of the period.

Incentivized Onboarding is discontinued

• The DAO has discontinued onboarding rewards. An alternative should be discussed by the DAO after this BIP on what types of rewards new entrants may receive.
• The DAO should discuss how to reallocate the 800,000 $BOTTO that was returned to the treasury from incentivized onboarding.

Intermediary Period Rewards Voters that spend VP between periods 2 and 3 on alternative voting pools receive 25% of revenue received during that time as active rewards

Voting Points:

• No significant changes to VP earning as the team continues to determine how to implement veBOTTO.

The DAO may elect to change parameters of the economy throughout the period if it finds more optimal methods.

Please refer to the BIP-22 forum post for full details and discussion.